August 29th, 2014
There are currently almost 11 million people in this country who receive Social Security disability payments every month and are dependent on those benefits to survive. According to the Social Security Administration (SSA), the average monthly disability payment is $1,146.
The trust fund that pays those disability payments is separate from the fund that pays retirement benefits. However, that trust fund is due to run out of money sometime between the end of 2016 and 2017.
However, if the trust fund runs out of money, then only 80 percent of approximately 8 million recipients would receive checks. Congress is expected to act to ensure that benefits are not cut, however, when that will happen is unclear. Some analysts say they may wait until the very last minute to protect benefits. Other analysts point out that because 2016 is an election year, Congress just may rectify the serious situation some time in 2015.
The question remains what they will do to keep the payments going out to recipients. One option they may choose is to take some of the funding that is earmarked to go into the Social Security retirement trust fund and instead have it go towards the disability fund.
As of today, the 12.4 percent of a worker’s pay goes to Social Security with the employee paying half and the employer paying the other half. Of that 12.4 percent, 10.6 percent goes to the retirement fund and 1.8 percent goes to the disability fund.
There are critics of any re-allocating plan, who point to the fact that Social Security trustees estimate that the Social Security retirement fund will be exhausted by the year 2033. Those critics say an overall increase in the Social Security payroll tax is needed to protect recipients of both funds.
If you have been injured or struggling with an illness that has left you unable to work, you may be entitled to Social Security disability insurance. The process for applying for benefits can be long and complicated. Contact experienced Illinois Social Security disability lawyer Marshall W. Conick, Attorney at Law, for a free consultation today.